Strategic’s West Marlowe play receives first 4-well pad
Strategic Oil & Gas Ltd. (ticker: SOG) has drilled its first four-well pad in the development corridor at West Marlowe in northern Alberta. Strategic reported that its recent Muskeg horizontal well, 2-13, has an average rate of 1,263 barrels of oil equivalent per day (BOEPD) over the last 24 hours on test.
Strategic said the well has produced over 7,400 BOE (54% oil) over the past 7 days. The well is currently flowing 685 BOPD of 36°API light oil and 3.5 MMcf/d of raw natural gas while choked back to approximately a 30% drawdown rate.
The 2-13 well is tied in and flowing into Strategic’s sales pipeline. It is approximately 3 miles from the Muskeg horizontal well 14-35 which was drilled and tested at 1,060 BOEPD in the first quarter of 2016.
Strategic says production results from the 2-13 and 14-35 wells demonstrate repeatability in the large areal extent of the of the Muskeg play.
Strategic has now tied in the first of the five Muskeg wells drilled in this prolific zone at West Marlowe, where the company has identified seventeen additional locations for near-term drilling.
Marlowe
The Marlowe area assets are located in northwestern Alberta, approximately 60 mile north of the town of High Level, Alberta. Strategic Oil & Gas is operator with a 100% working interest in 344,096 gross/net acres. In 2013, Strategic purchased 44,600 net acres of land in Marlowe, shot 19.97 km2 of 3D seismic, 177 km of 2D seismic, upgraded the production facility and built all weather road access to all major producing wells.
Strategic calls Marlowe “an asset like no other”:
- 3 billion barrels of light OOIP in stacked zones
- 100% working interest & infrastructure with replacement value $500+ million
- Muskeg & Keg River are key focus for growth
Strategic said it achieved further drilling efficiencies with longer horizontal laterals and completed additional stages per well to increase production performance in the recent wells. The wells were drilled 500 meters longer with an average lateral length of 1,900 meters and completed with 20 stages.
Strategic said it is in the process of finishing completions on the recently drilled four well pad and will provide results as the wells come on line.
Like many other oil and gas operators in North America, Strategic said it is also realizing cost savings relative to budget from reductions in drilling days and economies of scale related to pad development.
